Tether Used Falsified Documents and Shell Companies to Get Bank Accounts | Hacker News Reader

Tether Used Falsified Documents and Shell Companies to Get Bank Accounts

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88 pointsksherlock17 comments

Tether is about 10000x shadier than anything SBF had cooking.

Tether is laundering money while FTX was embezzling and defrauding money from customers. When we did some digging back in 2017 that is what we discovered about Tether and the various companies that they own. A full audit of Tether still has not been done which is what I was pushing for last year but they are definitely under the microscope now but we still will not find out if they are insolvent or not until some sort of government interaction takes place. At least with fiat we know when the dollar is going to be devalued, with crypto it's just a bunch of scammers and spammers managing these businesses with zero oversight which is why the lawsuits are taking place now.

We need to know these types of things so that we can know not to invest our precious fiat into companies that are just going to steal our money from us like what was done with Mt. Gox and FTX. We also need to know if the companies are at risk of collapse so we know when to trade against/short crypto, take profits, and buy the dip.

I'm curious if the collapse of Tether would lead to another crash like FTX did, or if it so expected by the community that it is essentially already priced in.

Who is holding Tether? Why would they take the risk on what is supposed to be a "stablecoin"?

I think I have like $15 of USDT on an exchange that's getting ready to kick Americans off. It's nice to hold when you don't want to deal with volatility. That's assuming you trust it won't go to zero. Also there are stable coin pools. I have some money in a pool of 2 different stable coins and I get paid out in the exchange token.

I've never understood the logic of a stable coin in general, why not just hold cash.

However, I'm suggesting that with the potential dramas around Tether, as any peg is equal to any other, why not hold a stablecoin that does not have Tether's bad reputation?

Because you can't transmit cash to crypto exchanges? Also, Tether is the oldest and most rock solid stablecoin. Maybe supported by criminals but they've never failed to redeem

They all never fail to redeem, until one day they do.

Then how does the cash get into Tether?

I think you mean you can't transmit cash between crypto exchanges. You can definitely transfer them into exchanges. Or perhaps you meant you can't store in a hardware wallet.

I personally don't believe any of these things make the case for holding a stable coin.

Remember the coin is pegged to a real thing, so it can't outperform, but it is at risk of total collapse. The only way for the "cash" you hold to collapse is for the entire banking system to collapse. In which case, you're still better off holding BTC.

Kinda funny how many people -- especially "curious" HN users -- will gladly write a comment wondering why anyone would use stablecoins rather than regular dollars, despite the ease of googling the answer or searching HN, and despite the litany of over-clever users asking the exact same question over the past three years.[A]

1) Stablecoins can interface with smartcontracts and the crypto blockchains, regular dollars can't.

2) More smartcontracts use Tether as their stablecoin than others.

... for the 1000th time.

It's almost like y'all don't want an answer, but just to sound clever and "above all of this".

[A] https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...

Obviously, those guys appear to all be crooks.

Yet after all the attacks in the media it's still trading 1:1

I don't understand it

Cryptocurrency community version of "too big to fail".

When Tether unpegs, it'll be catastrophic, so there's a lot of vested interest in keeping it stable looking.

Looks to me like the US government is trying to inhibit their business

Yes, that’s what you do to crooks. Fraud is fraud.

Many of them are documented crooks from beforehand.

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